Dyson Austen have just released their 3rd quarter survey for the top 10 residential sales in Sydney. The findings make comparables to the All Ords and Dow Jones, whilst we don't question the sales; we do the findings of the comparisons. The paper points to 42% growth, and compared to the All Ords and Dow Jones growth over the same period. The indexes are certainly about growth, the 42% however, is about the increase in dollar value of the top 10, on this basis the numbers are very misleading (it would have been better to leave the comparables to the indexes out altogether).
The quantum value is 42% higher on the previous quarter but this isn't growth - take out the record sales price of Andrew Banks home for $52 million and the numbers would have been in line with quarter 2, 2010. What would have been interesting; is to see how the m2 rates for the sales from Q2 to Q3 compared.
One thing we do note from the findings, is that when interest rates are at there peak, or consumer confidence is deteriorating or at a low, and the bourse is volatile; this is when the highest $ volume of Super Prime transactions take place. This movement of cash to property in these times is a safe place for cash to be, with tremendous tax advantages when the property is one day sold (as super prime property resales show), phenomenal tax free gains can be realised over time and is proof that the rarer and item is, the more it is prized...Sydney waterfronts are both rare and prized!
To see the full report click here
News & Media: Industry, Market News & Comment
A good friend of mine, former interest rate trader and now Mortgage Adviser, is probably the smartest bloke I know when it comes to financial translation - why...click here to read our article at Property Speaking
For all
of us, a new year holds a hope for a more healthy and prosperous year
than the one we left behind. We plan and give thought to the year
ahead and the year we wish to have - openly, or privately; we list our
hopes and dreams for the future, for ourselves and our families...please Rose & Jones Property Speaking to read more
BUYERS agents are emerging as key players in the Australian property market according to a survey conducted by a leading industry body. The survey conducted by the Real Estate Buyers Agents Association of Australia (REBAA) has shown that the collective buying power of its members accounted for more than $800 million of residential real estate purchases across the country last financial year. Property Speaking
go to Property Speaking
Our October market report was distributed last week in advance of the RBA announcement. Unfortunately in it, we picked that interest rates would rise on Tuesday, this is where we are in the cycle - interest rates ticking up! Like all cycles, they will also tick down over time. Why is this unfortunate - because I imagine this is what you want to hear...Property Speaking: Interest rates have gone up, so what do you do?
The wealth report compiled by Knight
Frank and Citi Private Wealth every year provides keen insights into what HNWI
have been and are thinking about - Globally. The focus of the report as
always is on prime residential real estate and provides an overview of the
collective conscience of HNW (respondents to the survey) and their views on
residential property as an asset class. Commercial property and its
global performance is also covered and what is happening as well as
where. In viewing the prime residential index, remember this is Prime
(prestige, luxury or premium) residential property, it would be a mistake to
not segment the market as you would a bourse...Australia is ranked No.1 in the
Asian region which may surprise many! The report is informative and some of the
findings will surprise many of the readers, for example - "Which do you
think will be the best performing property asset class in 2010"... and
where is Sydney, Australia ranked in the world's top cities today? And as
always, we remind property buyers, the fundamentals of the property purchase
are just as - if not more; important as the economics, this is not just a
cypher view, see what HNWI rank as important....read more
"Looking
holistically at the results, it’s clear to see that activity amongst the luxury
markets is slowing. Potential purchasers of high value real estate
(representative of the top 20% of suburbs) are likely to have been impacted by
the recent share market volatility and the economic uncertainty filtering out
of the USA and Europe. On the other hand, it is likely that the most affordable
end of the market is also not performing as strongly as the middle market, due
to the fact that this market is mostly characterised by first home buyers and
low income families. The lower priced end of the market is more adversely
affected by higher interest rates and tighter lending criteria from the banks.
Given these factors, the ‘middle market’, representative of the ‘average’
Australian property buyer is currently the strongest performer."
Our thoughts: Value is clearly returning to the market, this needs to be
tempered with the time of year and lower volumes of stock - we are also facing
a federal election (which whilst in our view it shouldn’t impact the decision
to invest in property, it clearly does), uncertainty with interest rates,
volatility in the stock markets and diminishing confidence has resulted more
broadly, but in considering the purchase of a new home or investment property
now is a good time to buy and most certainly - represented buyers are getting
the advantage in the market when considering value, gaining access to
off-market properties and so on. I am reminded of the often touted
"super coach" of rugby league - Jack Gibson, the game is
simple..."if you want to win, play where the seagulls are on the
pitch" implying, the opportunity is where no-one is or looking, because
the barriers and competition - and therefore the hard way through; is where the
players are...I too prefer the easier softer way. You deserve the upper hand by
leveraging expert advice in not just this - all things, we do this in most
other areas of life and business...isn't better to keep it simple?
To read the full article, click here
The head of Australia's representative body for buyer's agents says more regulation is needed to protect house buyer's at auction...read more
Property investing has become a popular Australian pastime with one in ten taxpayers owning a negatively geared property. But just what makes a good bricks-and-mortar investment?read more
We continue our series looking at possible holiday house investments; this week’s focus is QLD. And buyer’s consultant Stuart Jones from Rose & Jones talks to us about how you can find out about homes that are selling off-market.
...to read Click here
Buyers need to beware of a properties estimated sale range before embarking on costly due diligence, if a buyer doesn't have a real chance of securing a property at auction then they need to consider whether they should invest in the due diligence at all...click here to read the article...
...buyers need to think a little outside the square to gain a foothold in the tight housing market...read more
Underquoting...read more
Residential property investment is the highest performing asset class over the last 20 years according to latest research...by Atchison Consulting. Click here to read the article
The 2009 edition of the Wealth Report, compiled by Citi Private Bank and Knight Frank, indicates that luxury house prices have fallen around the world, but super-rich appetite for property remains undimmed...
Some of the key highlights include:
* Despite house price falls, the Knight Frank/Citi Private Bank Attitudes Survey shows that almost 55% of High Net Worth Individuals (HNWIs) plan to increase their exposure to residential property over the next two years.
* However, despite house price falls, the rich are committed to property as an asset class and the results of our Attitudes Survey, which represents the views of a cross section of Citi Private Bank’s wealthiest clients, reveal that 55% plan to increase their exposure to residential property over the next two years. In turbulent times the wealthy want their investments to be both tangible and transparent.
With mortgage rates at the lowest levels since the 1960s and expected to fall further, the stimulus for demand to increase is in place. However, increased activity may be hampered by loss of confidence during the recession...click here
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